|Rendering of Alum Rock in San Jose
Housing Trust's $4M Loan to Affirmed Housing's 87 Home Development Continues Villas on the Park Pattern
Housing Trust Silicon Valley has made a $4 million acquisition loan to Affirmed Housing for an 87 home development in San Jose - which will be modeled closely on a previous project we helped fund, Villas on the Park.
Currently an underused retail location, Affirmed plans to ultimately operate an 87 home site with 49 homes for families or individuals earning up to 30% Area Median Income (AMI). Of the 49 homes at 30% AMI, 29 will be designated for permanent supportive housing (PSH) and 14 will be for rapid rehousing (RRH).
The remaining homes will include 10 for individuals or families earning up to 50% AMI, 18 for families and individuals earning up to 60%, 9 units for families and individuals earning up to 80%. The affordability mix meets the Development Priorities in the Measure A Supportive Housing Loan Guidelines as a total of 50% of the units will be for PSH and RRH units. The project was funded from the 2015 Loan Pool; participants include Western Alliance, East West Bank, First Bank, Beneficial State Bank, Manufacturers Bank and Presidio Bank.
Revolving Credit for Burbank Housing to Help
In wine country, Housing Trust is teaming with the Northern California Community Loan Fund to provide a $5 million revolving line of credit for Burbank Housing to provide support for affordable housing in Santa Rosa and Napa. Housing Trust is a 50% participant in the loan for up to $2.5 million.
A year ago the Wine Country fires destroyed 8,900 structures including 5,000 homes. The severity of the fires, coupled with the fact the housing market was already very tight before the destruction, has caused rents to increase and prices of nearby homes to climb. Burbank Housing currently has 11 development projects in the pipeline including multi-family renters, affordable homes, rental homes for seniors and rehab projects for permanent supportive housing. Burbank's mission is to provide quality affordable housing in the North Bay.
The need for housing in the North Bay is more urgent than ever. The line of credit will help provide much needed housing in Sonoma and Napa Counties and Housing Trust is thankful to partner with Burbank to help our neighbors rebuild.